Riyue Heavy Industry Co., Ltd. announced that it has entered into share subscription agreement for the issuance of 71,073,204 A shares at a price of CNY 14.07 per share for gross proceeds not more than CNY 1,000,000,000 on May 23, 2022. The transaction will include participation from individual investors Fu Mingkang for 35,536,602 shares and Chen Jianmin for 35,536,602 shares. The transaction has been approved by the board of directors in the eighteenth meeting of the fifth directorate, seventeenth meeting of the fifth supervisory board and is subject to approval from the shareholders of the company and from the China Securities Regulatory Commission.

The securities issued under the transaction will subject to a transfer restriction of 18 months from the date of issuance.